Unified Payments Interface (UPI) has been instrumental in driving the digital payments revolution in India. Even though it has been in use for about seven years. UPI has experienced remarkable growth, surpassing 10 billion monthly transactions. Industry experts believe that UPI is poised for remarkable expansion, redefining the digital financial landscape in India in 2024.
“In 2024, UPI will continue to grow at about 60% in terms of volume above 2023 UPI transactions; P2M will continue to trend higher than that of P2P transactions; P2M will be about 60% of the total UPI volume,” said Mehul Mistry, Global Head-Strategy, Digital Financial Services & Partnerships, Wibmo, A PayU Company.
UPI is set to become the preferred mode of digital transaction in 2024
“The forecast for 2024 envisions UPI as a pivotal player in promoting financial inclusivity, offering a convenient and interoperable solution for users nationwide. With its user-friendly interface and widespread adoption, UPI is set to become the preferred mode of digital transactions, transcending geographical barriers,” said Shikhar Aggarwal, Chairman of BLS E-Services.
The forecast for 2024 envisions UPI as a transformative force, propelling India towards a future where digital transactions are not just a convenience but an integral part of everyday life, added Shikhar Aggarwal
It is estimated that UPI has over 260 million users today, and this will continue to increase as smart devices further displace feature phones.
What will help expand UPI adoption, especially in rural areas?
As per Mehul Mistry, the UPI 123PAY and UPI Lite services to support UPI for feature phones will help expand adoption, especially in rural areas.
Cross-border transactions using UPI in 2024
The benefits of international acceptance of UPI for Indians can have a transformative impact not just in terms of convenience and fund access but also in terms of economic benefits to countries that have a large number of travellers and diaspora from India.
“In 2024, we will see a lot more cross-border transactions happening using UPI rails from countries such as Singapore, the UAE, Mauritius, Oman, and Indonesia,” said Mehul Mistry.
1 billion transactions per day using UPI by 2026–27
As per Mehul Mistry, Unified Payments Interface (UPI) transactions are expected to continue growing steadily, reaching a remarkable milestone of 1 billion transactions per day by 2026–27.
As UPI continues to gain prominence, it is anticipated to play a significant role in driving economic growth.
Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 07 Dec 2023, 02:40 PM IST